Uttar Pradesh VAT Rules

Recovery or refund of petty amounts to be ignored

Notwithstanding anything contained in this Act, no tax, fee, interest or penalty under this Act shall be recovered and no refund shall be allowed if the amount involved for any assessment year is less than twenty five rupees.

Recovery of tax in case of a company under liquidation

1. Every person -
   • who is the liquidator of a company which is being bound up, whether under orders of a Court or otherwise; or
   • who has been appointed the receiver of any assets of a company {here in after referred to as the liquidator} shall within thirty days after he has become such liquidator, give notice of his appointment as such to the appropriate authority.
2. The appropriate authority shall after making such inquiry or calling for such information as it may deem fit, notify the liquidator within three months from the date on which he receives notice of the appointment of the liquidator the amount which in the opinion of the appropriate authority would be sufficient to provide for any tax which is then or likely thereafter to become, payable by the company.
3. The liquidate shall not part with any of the assets of the company or the properties in his hands until he has been notified by the appropriate authority under sub-section (2) and on being so notified, shall set aside on amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the assets.

   Provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a Court or for the purpose of the payment of tax payable by the company under this Act or for making any payment over debts due to Government on the date of liquidation or for meeting such costs or expenses of the winding up of the company as are in the opinion of the appropriate authority reasonable.

4. If the liquidator fails to give the notice in accordance with sub-section (1) or fails to set aside the amount as required by, or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be liable to pay:

   Provided that if the under sub-section (2), the amount of any tax payable by the company is notified personal liability of the liquidator under this sub- section shall be to the extent of such amount.

5. Where there are more liquidators than one, the liquidations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.
6. The provision of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

   Explanation- (1) "appropriate authority" in relation to a company means the competent authority to assess the tax on the company.

7. company has the meanings assigned to it by clause(1) of sub-section (1) of section (3) of the Companies Act, 1956 (1 of 1956).

Liability of director of private company in liquidation

Notwithstanding anything contained in the Companies Act, 1956, when any private company is wound up and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, can not be recovered, then every person who was a director of the private company at any time during the period for which the tax is due shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

Power to grant instalment

1. Subject to such conditions and restrictions, including the conditions regarding furnishing security to the satisfaction of the assessing authority, as may be deemed fit to be imposed-
   • the State Government may permit any dealer or other person, against whom any amount of tax, penalty or other dues is outstanding, to pay the amount in such number of monthly installments not exceeding twenty four; and
   • the Commissioner may likewise permit any dealer or other person, against whom any amount of tax, penalty or other dues aggregating not more than one lakh rupees is outstanding, to pay the amount in such number of monthly instalments, not exceeding twelve.
2. Where such dealer or other person fails to furnish, within sixty days of the order referred to in sub-section (1), adequate security to the satisfaction of the assessing authority concerned for payment of the outstanding amount, or fails to comply with the conditions or restrictions imposed in such order, the amount due shall be recoverable at once.